FRC issues amendments to FRS 102

Dec 15, 2017

The FRC issues amendments to FRS 102 which includes those made to incorporate the new small entities and micro-entities regimes in the Republic of Ireland (the latter by amendments to FRS 105).

The Financial Reporting Council (FRC) has completed a triennial review of FRS 102 and has published Amendments to FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland - Triennial review 2017 - Incremental improvements and clarifications

The amendments include those made to incorporate the new small entities and micro-entities regimes in the Republic of Ireland (the latter by amendments to FRS 105). These include, for example, the introduction of a new Appendix D to Section 1A in FRS 102 ‘Disclosure requirements for small entities in the Republic of Ireland’ and similarly a new Appendix B to Section 6 in FRS 105 ‘Company law disclosure requirements for micro-entities in the Republic of Ireland’. The amendments to incorporate the small entities and micro-entities regimes in the Republic of Ireland are effective for accounting periods beginning on or after 1 January 2017, with early application permitted provided the Companies (Accounting) Act 2017 is applied from the same date. 

The FRC in announcing the completion of the triennial review and the issuing of the amendments document also confirmed the simplification of the measurement of directors’ loans to small entities, following the interim relief granted earlier this year and note the other principle amendments to FRS 102: 

  • require fewer intangible assets to be separated from goodwill in a business combination;
  • permit investment property rented to another group entity to be measured by reference to cost, rather than fair value;
  • expand the circumstances in which a financial instrument may be measured at amortised cost, rather than fair value; and
  • simplify the definition of a financial institution.

In general these amendments are effective for accounting periods beginning on or after 1 January 2019, with early application available.  Read the full press release and access the amendments document here.